Module 9

1. EXTERNAL
CRISIS – What
to do!
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2. When dealing with an
external crisis, the
strategy one will use
depends on the
individual business
operation, assets, and
needs.
However, there are
some core stages that
every business should
address when
developing an external
crisis preparedness
plan.
Business Impact Analysis (BIA)
Contingency Plans
Continuity Plans

3. Business Impact Analysis (BIA)
Before you begin building the plan itself, you will first need to conduct a
business impact analysis. A BIA seeks to anticipate the effects of various
scenarios on a business, such as loss of sales or increased expenses in the
event of a natural disaster. This will give you the foundational data you need
to build your natural disaster preparedness plan.
There are many ways to conduct a business impact analysis, but a good place
to start is a simple BIA questionnaire. A BIA will of course be a greater
challenge for larger businesses with more complex operations, as they will
need to consider more factors and consult a wider range of insiders for
necessary information.

4. Contingency Plans
A contingency plan is a plan for what to do for the duration of an unusual
event, such as a natural disaster. This plan will involve steps that will be taken
if the event comes to pass, as well as allocate resources for that possibility.
Examples of contingency plans include:
• Planning of evacuation routes;
• Installation of emergency equipment;
• Investment in backup power sources;
• Planning for adjusted operations in the event of loss of workforce;
• Insurance that covers potential loss of or damage to inventory or property;
• Developing remote work options in case the physical location is
compromised.

5. Continuity Plans
A continuity plan is a plan that accounts for actions that need to be taken for a
business to resume operations as efficiently as possible following an unusual
event.
Examples of continuity plan measures include:
• Allocating additional funds for things like emergency PTO, repairs, and
stock replenishment;
• Building relationships with a variety of other businesses and suppliers to
speed the recovery of supply and business operations;
• Developing remote work options in case the physical location remains
compromised;
• Preparing alternate transportation for goods.

6. In the event of a natural disaster, a
business should ideally be prepared to
provide information and updates to
interested parties such as consumers,
stakeholders, employees, community
members, and government officials.
This information could include anything
from a timeline for the expected return
of access to services to an inventory of
lost products.
Natural Disaster
Some measures that may be
included in a crisis communications
plan include:
• Identifying the crisis
communications team;
• Investing in spokesman training
for the crisis communications
team;
• Setting up a notifications system;
• Preparing holding statements;
• Offering easy access to the
notifications system and contact
information.

7. In the event of a crisis from
external sources, your employees
could be negatively impacted in a
wide variety of ways, including loss
of work hours, loss of personal
property, and emotional trauma.
By taking care of your employees
during this crisis, you will
potentially allow them to better do
their jobs in the long run, earn
loyalty from your employees, and
demonstrate ethical business
operations to the public. Options
for supporting your employees
during an external crisis include:
Employee Assistance
and Support
Providing transportation;
Providing direct financial assistance;
Offering remote work options;
Expanding flexibility for work hours;
Offering additional PTO;
Expanding access to medical care;
Expanding access to counseling;
Offering care packages;
Offering your premises as an avenue for
sheltering in place.
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8. Hazard mitigation refers to
steps taken to eliminate
hazards or reduce the
damage caused by them,
especially in a specific
scenario such as a natural
disaster. Hazard mitigation
measures for a business
may include steps such as:
Hazard Mitigation
Structural improvements;
Adjustments based on professional
hazard audits;
Accessibility updates;
Employee training for emergency
response;
On-premises adjustments based on
government recommendations for
crisis/disaster hazard prevention.
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9. Risk prioritisation is important because it
allows you to determine how much of your
resource pool should reasonably be dedicated
to each potential risk. For example, a business
in Turkey, Greece, Albania, Italy, and Romania
(the countries with the highest hazard in
Europe) would be wise to allocate a significant
portion of their resource pool towards
earthquake response, but likely will not
substantially benefit from hurricane
preparations.
In contrast, a business in Western Germany
should likely invest in a floos response plan,
but likely will not substantially benefit from
earthquake preparations.
As another example, a financial services
company would be wise to invest heavily in IT
disaster recovery plans while carrying few
physical products that they would need to
worry about being damaged. Meanwhile, a
furniture store would be wise to take steps to
protect their physical inventory.
In short, while it is a good idea to cover your
bases, you should prioritize risk based on
likelihood, as well as the impact that it would
have on your business. Deploying data analysis
systems to consider environmental, health,
and safety risks can provide a structured view
of risks and how they should be prioritised for
any business.
Risk Prioritisation

10. A risk management plan identifies,
analyses, prioritises, and monitors risks,
and establishes protocols to address
these risks if the occasion arises.
A risk management plan should be a
living document that reassesses risks,
provides dynamic data analytics, and
adjusts the prescribed strategies on an
ongoing basis.
Risk Management

11. Risk Management To develop an effective risk management plan for
external crisis risk, you should take the following steps:
Designate a risk management team;
Identify risks;
Prioritise risks;
Determine who would be impacted
by the event;
Acquire and deploy risk management
information systems and risk
analytics software for processing and
managing data on an ongoing basis;
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Analyse relevant data continuously to
ensure all processes and plans are up to
date and appropriate;
Anticipate potential losses;
Create an easily accessible document
outlining the plan;
Clearly outline each risk, the potential
damages associated with each risk, the
protocols meant to prevent that risk, and
the protocols for responding to that risk;
Regularly reassess and update your risk
management plan.
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